Alpha Ltd. bottles and distributes mineral water from the companys natural. Alpha markets two products: ten-ounce plastic bottles and two-gallon plastic containers.

Required

For 2011, Alpha marketing managers project monthly sales of 200,000 ten-ounce bottles and 50,000 two-gallon containers. Average selling prices are estimated at $0.25 per ten-ounce bottle and $1.50 per two-gallon container. Prepare a revenues budget for Alpha, for the year ending December 31, 2011. (5 marks)

Alpha begins 2011 with 400,000 ten-ounce bottles in inventory. The operations manager requests that ten-ounce ending inventory on December 31, 2011, be no less than 300,000 bottles. Based on sales projections as budgeted above, what is the minimum number of ten-ounce bottles Alpha must produce during 2011? (5 marks)

The operations manager requests that ending inventory of two-gallon containers on December 31, 2011, be 100,000 units. If the production budget calls for Alpha to produce 1,200,000 two-gallon containers during 2011, what is the beginning inventory of two-gallon containers on January 1, 2011? (5 marks)

Critically discuss the role of budgeting in the management process? (10 marks)